Casino stocks have been oversold and are now cheap, analyst David Katz told CNBC on Thursday.

Shares are down well in excess of where the market is and are now taking back some of the losses they've given up over the past 30 days, he noted.

"Everything looks like a screaming buy. As I look across casinos, particularly those that are domestic, but Macau as well, they all look attractive for a trade," the managing director for Jefferies said on "Power Lunch."

However, when it comes to longer-term fundamentals, there may be some differentiation once the market settles in, Katz said.

Casino stocks jumped on Thursday after news that revenue in the Chinese territory of Macau rose 2.6 percent in October compared with a year earlier. It was its highest monthly revenue since 2014.

When it comes to Macau, Katz said the newly built Hong Kong-Zhuhai-Macau bridge will help it attract more people to its casinos.

That mass market will be essential in Macau's future. "They're driving the profit growth in Macau," he said.

However, he said, China, and Macau in particular, is a very complicated place.

"We have a China macro, we have concessions that are expiring for each of the operators over the next two or three years, which poses a big risk. So we're at an important moment to define what's going on in that market and how much macro will drive it."